Bain, Oaktree in Talks to Fund Some of Gupta’s Australian Units

Bain Capital Credit, Oaktree Capital Group and White Oak Global Advisors are in talks to refinance some of Sanjeev Gupta’s borrowing from Greensill Capital at some of his Australian businesses.

The funds have been carrying out due diligence to provide at least A$430 million ($333 million) to GFG Alliance’s Australian Mining and Primary Steel units, including the Whyalla steel mill in the south of the country, according to people familiar with the matter. One of the funds could conclude a deal with GFG as soon as early May, said the people, who asked not to be named because the talks are private. There is no certainty the talks will result in a deal, the people said.

Officials at GFG and Oaktree declined to comment on the talks. Representatives for Bain and White Oak weren’t immediately available to comment.

The financing would provide relief for Gupta as he attempts to secure the future of his teetering metals empire following the demise of Greensill, his largest backer, in March. Gupta’s GFG has borrowed about $5 billion from Greensill, of which some A$430 million was through a facility for the Australian Mining and Primary Steel business.

The refinancing of that facility would allow Gupta to fend off an attempt by Credit Suisse Group AG to wind up some of the Australian assets. The Swiss bank is seeking to push some GFG units into insolvency to recover part of the loans it made to the group through Greensill. A first hearing on the petition is scheduled for May 6.

South Australia Premier Steven Marshall said on Sunday that he was hopeful a deal could be done before May 6.

“When I spoke to Sanjeev Gupta this time last week he was increasingly confident that he will be able to get that credit arrangement in place,” Marshall said at a press conference.

The Whyalla mill is a supplier to steel product manufacturer Infrabuild Australia Pty Ltd., GFG’s most profitable unit.

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